One of the main issues with the erstwhile Board for Industrial and Financial reconstruction (BIFR) was that the cases were taking ages to be resolved. During its life of 29 years, BIFR has managed to turn around some companies but a significant number of sick companies managed to turn only sicker.
The Government dissolved it in 2016 and replaced it with the National Company Law Tribunal (NCLT). The NCLT needed an Act to commence its work; after some delay, the Government gave it the freshly minted Insolvency and Bankruptcy Code (IBC).
The IBCs preamble states it has been enacted to consolidate and amend the laws on reorganisation and insolvency resolution of corporates, partnership firms and individuals in a time-bound manner for maxim…
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